BranchOut Food Inc. (NASDAQ: BOF), a food technology company using its proprietary GentleDry™ process to produce natural fruit and vegetable snacks, provided a business update on first quarter 2026 operations and ongoing production ramp activities. The company expects Q2 2026 to be a record revenue quarter, driven by major customer deliveries and record production levels achieved in March and April.
During Q1, the company built substantial inventory to support large committed customer deliveries scheduled for Q2. While Q1 revenue was below the record Q4 2025 results, this was primarily due to shipment timing. Production ramped to approximately 46,000kg per month in March and into Q2, marking the highest production months in company history.
BranchOut delivered the largest order in its history during Q2 to the nation's second largest warehouse club retailer. The product, Crunchy Fruit Chips, is now on shelves nationwide in more than 600 club locations. Early sales data indicates the product is performing exceptionally well and exceeding the retailer's internal thresholds for potential everyday placement. The company estimates that an everyday program could represent approximately $15 million in annual recurring revenue.
Additionally, BranchOut is in final negotiations with a large household name brand regarding a potential long-term tolling partnership. The arrangement could utilize the company's newly installed fourth large scale REV line on a near continuous 24/7 basis. Management estimates the program could generate approximately $6–7 million in annual revenue once fully ramped, with minimal raw material costs and higher gross margins.
Expansion continues with the nation's largest warehouse club retailer through additional regional programs and new product launches. During Q2, the retailer placed another large Pineapple Chips order for the Southeast region and committed to a larger follow-on order for Q4. The company also secured its first regional launch of Mango Chips into the Bay Area market, which management believes has potential to outperform the current top-selling Pineapple Chips. Multipack product lines targeting back-to-school season are also generating interest, potentially opening placement in a new department.
BranchOut conducted a major innovation meeting with the world's largest retailer, showcasing over 35 product concepts spanning multiple categories. The presentation included fruit and vegetable snacks, crunchy dried cheese products, shelf stable cheesecake bites, chocolate covered fruit, and cheese and fruit snack mixes developed around GLP-1 and high protein/high fiber trends. Buyers from more than six categories expressed strong interest, though initial launches are now expected in early 2027.
The ingredient and bulk supply channel is emerging as a major growth driver. The company expects this channel to generate approximately $6–7 million in revenue during 2026, compared to nearly $2 million in 2025. Expansion into the European private label market is also progressing, with a German partner expected to place a first commercial order of approximately $500,000.
Kaufman Capital has provided approximately $2.25 million in new capital through non-dilutive working capital loans and warrant exercises to support production and inventory build. The terms are favorable, with an 8% interest rate, reflecting strong alignment with the company's growth strategy.
